Ora Banda Mining Limited Fundamental Analysis (ASX: OBM.AX)
Ora Banda Mining Limited (ASX: OBM.AX) shows strong financial fundamentals with a PE ratio of 12.82, profit margin of 26.62%, and ROE of 46.66%. The company generates $0.8B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze OBM.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentOBM.AX demonstrates superior asset utilization.
Valuation Score
ExcellentOBM.AX trades at attractive valuation levels.
Growth Score
ModerateOBM.AX shows steady but slowing expansion.
Financial Health Score
ExcellentOBM.AX maintains a strong and stable balance sheet.
Profitability Score
ExcellentOBM.AX achieves industry-leading margins.
Key Financial Metrics
Is OBM.AX Expensive or Cheap?
P/E Ratio
OBM.AX trades at 12.82 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, OBM.AX's PEG of 1.17 indicates fair valuation.
Price to Book
The market values Ora Banda Mining Limited at 5.17 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.91 times EBITDA. This is generally considered low.
How Well Does OBM.AX Make Money?
Net Profit Margin
For every $100 in sales, Ora Banda Mining Limited keeps $26.62 as profit after all expenses.
Operating Margin
Core operations generate 39.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $46.66 in profit for every $100 of shareholder equity.
ROA
Ora Banda Mining Limited generates $24.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ora Banda Mining Limited generates strong operating cash flow of $426.69M, reflecting robust business health.
Free Cash Flow
Ora Banda Mining Limited generates strong free cash flow of $289.86M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.15 in free cash annually.
FCF Yield
OBM.AX converts 10.44% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.82
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.000
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.47
vs 25 benchmark
ROA
Return on assets percentage
0.25
vs 25 benchmark
ROCE
Return on capital employed
0.46
vs 25 benchmark
How OBM.AX Stacks Against Its Sector Peers
| Metric | OBM.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.82 | 25.31 | Better (Cheaper) |
| ROE | 46.66% | 1272.00% | Weak |
| Net Margin | 26.62% | 452.00% | Weak |
| Debt/Equity | 0.06 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 2.00 | 3.16 | Strong Liquidity |
| ROA | 24.57% | 2664.00% | Weak |
OBM.AX outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ora Banda Mining Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Commodity, Value
EPS CAGR
N/A
Industry Style: Cyclical, Commodity, Value
FCF CAGR
N/A
Industry Style: Cyclical, Commodity, Value